Most potential young buyers prefer renting a property within a in fashionable area, close to their social circles rather than commit themselves to a mortgage, according to new research by General Motors Acceptance Corporation - Residential Funding Corporation (GMAC-RFC)

This has contributed in the fall of first time buyers in the housing market, which has dropped by 50% to just 28%.

In fact the research reveals that among one in ten young people does not intend to buy a property for at least another eight to ten years.

Seven in ten (68%) say they prefer to rent because it allows them to live close to their friends. A further two thirds (61 per cent) say renting allows them to live in a better area than they could afford to buy in.